Where are the Cannabis Funds Going?

July 11, 2025

They said the money would heal the hurt. But in Maryland, some counties are still wondering where that promise went.

Adult-use cannabis sales in Maryland hit $17.5 million in the first quarter of 2025. The state touted an equitable tax structure. Yet many communities—especially those most impacted by prohibition—are asking: where’s their share?

Let’s follow the money.

According to the Maryland Comptroller’s June 2025 report, the 12% cannabis tax revenue was allocated as follows:

• • 35% to the Community Reinvestment and Repair Fund (CRRF)

• • 5% to counties (half of which must be shared with municipalities that host dispensaries)

• • 5% to the Cannabis Public Health Fund

• • 5% to the Cannabis Business Assistance Fund (through FY 2028)

• • The remainder goes to the state’s General Fund

That means less than 3% of the revenue is reaching cities and towns where dispensaries operate. For counties without strong infrastructure—or for Black and brown communities targeted during the war on drugs—that 2.5% is extremely small.

Now let’s compare that to Pennsylvania’s proposed legislation, Senate Bill 120.

If passed, Pennsylvania would impose a 14% total tax at retail—6% sales tax and 8% excise tax. But the real difference is in how they divvy it up:

• • 10% to municipalities with cannabis establishments

• • 10% to counties with cannabis establishments

• • 80% to the Cannabis Regulation Fund:

• - 40% for the Cannabis Control Board (CCB)

• - 15% for medical cannabis access

• - 10% for prevention & counseling

• - 10% for law enforcement

• - 25% for economic relief and other purposes

That’s 20%—guaranteed—to local governments. Maryland? 5% split between counties that have dispensaries. New Jersey allows localities to levy their own taxes (up to 2%) but doesn’t guarantee any of the state’s share to go back to towns or equity funds.

So again we ask: where’s the weed money going?

Community leaders deserve more than a footnote in a quarterly report. With over a third of Maryland’s funds earmarked for reinvestment, let’s push for transparency, equity, and follow-throughnot just promises.

📊 Learn more from the original reports and sources:

[Maryland Comptroller Q1 2025 Cannabis Tax Report: https://www.marylandcomptroller.gov/content/dam/mdcomp/md/media/2025/06-13-2025-comptroller-quarterly-report-cannabis-sales.pdf

[Cannabis Business Times: PA Adult-Use Bill Overview: https://www.cannabisbusinesstimes.com/us-states/pennsylvania/news/15750429/pennsylvania-could-be-25th-state-to-legalize-adultuse-cannabis-under-new-bill

[New Jersey Cannabis Tax Rules - NJ.gov: https://www.nj.gov/treasury/taxation/cannabis/recreational/cannabissalestax.shtml